The major even, leading the Forex market this week, was the summit of the European Union leaders on June 28–29. The weakness of the euro, which was prevailing for the most part of the week, was erased by the end of the meeting. Not many market participants believed that the summit would bring any noticeable result and that depressed mood pressured the euro to the downside. The skepticism made the positive reaction even stronger when it became evident that … “EU Summit Drives Weekly Currency Moves, Euro in Favor Again”
Month: June 2012
Franc Follows Euro in Gains, EUR/CHF Closes Flat
The Swiss franc advanced, following the euro in gains. The Swissie fell versus the shared European currency itself, but quickly recovered and ended the session flat. The European summit and agreements that European politicians reached during the meeting sparked euphoria among investors. The leaders of the European Union outlined steps for closer integration of the banking system of the Union. They also eased the debt burden on Spain by allowing banks direct access to the bailout funds. The lawmakers … “Franc Follows Euro in Gains, EUR/CHF Closes Flat”
CAD Gains on Traders’ Euphoria After Summit
The Canadian dollar jumped against the US dollar and the Japanese yen, demonstrating the biggest advance this year, as risk appetite ruled the Forex market after the conclusion of the two-day EU summit. The currency closed weaker against the euro, but the losses were limited. The meeting of European Union leaders has ended and the result was unexpectedly good. The European chiefs showed willingness to fight the crisis and to take actions. The problems of the eurozone are far from … “CAD Gains on Traders’ Euphoria After Summit”
US Dollar Pulls Back on Better News Out of Europe
Today, it’s all about the better news out of Europe. US dollar is pulling back against high beta currencies as the news that the EU summit might have accomplished something substantial spurs risk appetite. Measures to bring down Spanish and Italian bond yields have been agreed upon, including the ability to access European bailout funds without the need to conform to austerity measures. Additionally, a European banking union … “US Dollar Pulls Back on Better News Out of Europe”
Koruna Rallies Even After Central Bank Lowers Interest Rates
The Czech koruna rallied today, profiting from the general positive sentiment on the Forex market, even after the Czech central bank decided to lower interest rates. The Czech National Bank lowered its key interest rate by 25 basis points to 0.5 percent. The bank explained its decision by negative outside influence and weak economic activity. Yet the positive impact of the European summit erased all negativity from the FX market and allowed … “Koruna Rallies Even After Central Bank Lowers Interest Rates”
Japanese Yen Slides as Risk Appetite Rises
Japanese yen is sliding as risk appetite rises on unexpectedly good news out of Europe. The fact that there has been something resembling progress has led to an increase in risk appetite, and the yen is falling as Forex traders look for better yields, and stop worrying so much about finding safe haven. Herman Van Rompuy, President of the European Council, announced that Spanish banks will be seeing better … “Japanese Yen Slides as Risk Appetite Rises”
Euro Rebounds as Summit Positively Surprises Traders
The euro sharply rebounded today as the European Union summit surprised Forex market participants as some positive results already came out, giving hope that the meeting would not consist of just empty talks. The lawmakers eased loan term for Spanish banks, a move that may result in dropping yield for Spanish bonds. Additionally, Herman Van Rompuy, the President of the European Council, suggested allowing banks direct access to the European Stability … “Euro Rebounds as Summit Positively Surprises Traders”
5 Holes in the EU Summit Agreement – EUR/USD Rally
This late night European Union Summit had some achievements. France, Italy and Spain insisted on focusing on measures for the current crisis, and not only long terms visions. The leaders agreed on allowing the bailout mechanism to directly recapitalize banks – a move that allows lifts the burden off Spain. In addition, the ESM will … “5 Holes in the EU Summit Agreement – EUR/USD Rally”
Pound Drops as Britain in Recession
The Great Britain pound weakened as the United Kingdom entered recession, bolstering the case for the Bank of England to ease its monetary policy further to aid the struggling economy. Britain’s gross domestic product shrank 0.3 percent in the first quarter of 2012, with the same rate as in Q4 2011. Two consecutive quarters of deteriorating GDP means the economy has entered recession. Other economic indicators were also bad. The Nationwide House Price Index … “Pound Drops as Britain in Recession”
European Summit Starts, Euro Remains Lower
The euro fell today against the US dollar for the fourth straight day even as a two-day meeting of European leaders has started. The currency was also down versus the Japanese yen, but climbed against the Great Britain pound for the second day. European chiefs are meeting today to discuss the problems of the region. It is likely that Italy, Spain and France would push for implementation of euro-bonds, but Germany most certainly would … “European Summit Starts, Euro Remains Lower”